Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

8 death cases not covered by term life insurance

ET Online|
Types of deaths not covered by life insurance policies
1/9

Types of deaths not covered by life insurance policies

Most people know that term life insurance will give a lump sum death benefit to the nominee on the demise of the insured (policyholder), within the policy term. However, not many know that there certain types of death that are not covered by life insurance policies. So, if you have a term insurance or are planning to buy one it is essential for you to know which death cases are not covered in your term insurance policy.

Getty Images
Murder of the policyholder
2/9

Murder of the policyholder

Case 1: If the nominee is a criminalThe insurer will not settle the claim if the policyholder is murdered and investigations reveal the nominee was involved in the crime.
Case 2: If death of policyholder was due to involvement in criminal activity The insurer will not settle the claim if the policyholder is murdered due to his involvement in a criminal activity.

Getty Images
Death happens under the influence of alcohol
3/9

Death happens under the influence of alcohol

If policyholder's death is due to driving under the influence of alcohol or narcotic substances, the insurer will reject the claim.

Getty Images
Not disclosing the habit of smoking
4/9

Not disclosing the habit of smoking

If you are a smoker, disclose the habit before availing the term insurance plan. Smokers may have a higher level of health risk and insurers add an additional amount (load) to the premium.

Getty Images
Death by participating in hazardous activities
5/9

Death by participating in hazardous activities

Death by participating in an adventure or hazardous activity is not covered by term insurance. These activities pose a threat to the life of the policyholder and may result in fatal accidents.

Getty Images
Death due to pre-existing health conditions
6/9

Death due to pre-existing health conditions

Death due to any condition that existed while availing the term insurance policy will not be settled by the insurer.

Getty Images
Death due to childbirth
7/9

Death due to childbirth

If the death of the policyholder takes place due to pregnancy complications or childbirth, the insurer would not pay the sum assured to the nominee.

Getty Images
Suicidal death
8/9

Suicidal death

If the policyholder commits suicide within the first year of the policy term, then the nominee will not get the death benefit. However, most insurers provide suicide coverage from the second year onwards from the date of purchase of the policy, subject to terms and conditions.

Getty Images
Death due to natural disaster
9/9

Death due to natural disaster

If a policyholder with a term insurance plan dies due to a natural disaster such as an earthquake, or hurricane, then the nominee will not get the claim from the insurer.

Getty Images
X
User

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service